Financial misrepresentation has usually been analysed by large-scale empirical research. However the generality gained from such an approach is at the cost of understanding the rich and complex nature of financial misrepresentation in real organizations. We adopt a case study approach to gain...

We examine the relationship between corporate governance and default risk for a sample of firms cited in the Securities and Exchange Commission's (SEC's) Accounting and Auditing Enforcement Releases (AAERs). Using hazard analysis of actual default incidence and OLS regressions of a continuous...

Objective – This study investigates the effects of financial constraints on the conservatism practices of Brazilian firms.Design/methodology/approach – A sample totaling 1,086 observations of Brazilian publicly traded companies listed on BM&FBovespa was developed from 2000 to 2012. In the...

We document the distortionary effects of accounting-based regulation on reported earnings. In India only firms with negative book value of equity (networth) can seek bankruptcy protection. Using a novel dataset of bankrupt firms from India, we show that firms manage earnings downward to seek...

In this paper, we study two types of accounting conservatism in the property-liability (P&L) insurance industry – ex-ante and ex-post conservatism. Ex-ante conservatism means that firms over-report liabilities initially, before more detailed information becomes available. In contrast, ex-post...

For a large sample of U.S. listed firms, we find that unconditional and conditional accounting conservatism help lower bankruptcy risk. We further find that the mitigating effect of accounting conservatism on bankruptcy risk functions via cash enhancement and earnings management mitigation...

This paper investigates if and how a peer's bankruptcy affects financial reporting by other firms within the industry. Prior research documents that the bankruptcy filing of a peer firm has a negative capital market effects on other firms within the industry (lower stock market value and higher...

This paper describes a method of teaching accounting ethics that can easily be incorporated into any course. This approach focuses on disasters that resulted from a disregard of ethics. This paper posits that examining the consequences of unethical behavior and providing real-life examples can...

Purpose—This study explores the extent of earnings management (accruals and real activities) used by four profiles of very small French firms. Design/methodology/approach—The study uses a sample of 2,700 firm-year observations of bankrupt firms and 2,700 firm-year observations of...

The Economic cost of business failure is relatively large, Government, providers of capital, as well as management and employees are severely affected. More critical are the reporting accountants who are likely to face potential litigation if their report failed to provide an early warning...